Confidential

[jainen]

How am I supposed to do Kiddie Tax for a a 17-year-old? Suppose his sister don't want him to know what her income is? Gonna have to rewrite the old Gramm-Leach-Blilely statement -- family members are the main snoops that people are hiding from. Suppose the parents refuse to let me release info to their children? Ain't it all supposed to be confidential?

[BOB W]

Kiddie tax...

This will force all working teenagers under 18 to use the parents tax preparer. If the parent uses Turbo tax or, other self prepared program or paper, to seek a preparer to do all returns. It may be a boost to the industry, at least for the first year or two.

I plan on sending a newsletter this year, in July, giving my clients a heads-up on this and other issues for the 2006 tax year. They need to know about "Energy Credits", Kiddie Tax and many other issues ahead of the year end.

[Unregistered]

Kiddies tax

Remember, the kiddies tax applies if they have unearned income over $1700. How many kids do you know that have unearned income over $1700?

[BOB W]

Guest.......

....thanks for the reminder and you are most correct that this law change will effect very few "Kiddies/Parents".

[Jiggers]

Kiddie Tax

I have one client, grandparents, who set up investment accounts for their two grandchildren. Income requires the Kiddie Tax as it is over $2,000 per year. Parents of the children are divorced and the custodial parent refuses to provide the income and tax information from her return so that the Kiddie Tax form can be completed. The form does say that you can use estimates. I did get her information for 2004 and I estimated her 2005 income and attached a note that this is estimated and that the custodial parent refuses to provide information.

The grandparents want to pay the taxes due.

I told the grandparents to let her file the return and pay the taxes and next year she will provide the information!

[jimmcg]

Kiddie Tax

Jiggers, I like your approach.